In a significant move towards sustainable technology, Alphabet's Google has announced the world's first corporate agreement to purchase power from multiple small modular reactors (SMRs) developed by startup Kairos Power. This partnership aims to meet the escalating electricity demands of artificial intelligence (AI) by bringing Kairos' first SMR online by 2030, with plans for additional reactors through 2035.
The agreement involves Google committing to buy a total of 500 megawatts of power from six to seven smaller-scale reactors, distinguishing them from traditional larger nuclear plants. Michael Terrell, Google's senior director for energy and climate, emphasized the role of nuclear energy in providing reliable, clean power around the clock.
This partnership is part of a broader trend among technology firms securing nuclear energy to support their expanding data center operations. Earlier this year, Amazon.com purchased a nuclear-powered data center from Talen Energy, and recently, Microsoft teamed up with Constellation Energy to revitalize a unit of the Three Mile Island plant in Pennsylvania.
Goldman Sachs estimates that U.S. data center power usage could nearly triple between 2023 and 2030, necessitating approximately 47 gigawatts of new generation capacity. While natural gas, wind, and solar power are expected to contribute significantly, nuclear energy from SMRs like those developed by Kairos Power offers a clean, reliable alternative to meet these demands.
Kairos Power's SMRs are designed to be factory-built, reducing construction costs and times compared to traditional reactors. However, the startup must secure full construction and design permits from the U.S. Nuclear Regulatory Commission (NRC) and local agencies, a process that can extend over several years. Despite these challenges, Kairos recently obtained a construction permit for a demonstration reactor in Tennessee.
Critics of SMRs highlight concerns about their cost-effectiveness and the long-term management of nuclear waste. Nevertheless, Google remains optimistic, stating that its commitment through an order book framework with Kairos Power signals strong market demand and supports the accelerated development of SMRs. Mike Laufer, CEO and co-founder of Kairos, expressed confidence that this collaboration will enhance the prospects of SMR projects being delivered on time and within budget.
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Google to buy nuclear power for AI needs from startup Kairos
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